Key Risk

Without legal due diligence, you may encounter issues related to ownership, permits, taxes, existing encumbrances, registrations, and contractual agreements. Such risks often only become apparent after payment has been made or a contract has been signed.

When do you need a lawyer?

It is advisable to consult an attorney as soon as you are seriously considering purchasing or leasing real estate in Bali or Lombok, when documents need to be reviewed, or when there is uncertainty regarding ownership, permits, encumbrances, or contractual terms. A legal review before making a payment or signing a contract reduces the risk of costly mistakes.

What documents do we check?

Among other things, we review title documents, certificates, permits, registrations, tax information, existing encumbrances, relevant agreements, and other legal documents that are relevant to the transaction.

Common Mistakes

Common mistakes include paying before documents have been fully reviewed, relying on incomplete verbal assurances, assuming that a permit or property title is in order without verifying it, and signing contracts without conducting legal due diligence.

Step-by-Step Guide

We begin by gathering and reviewing the relevant documents. We then verify ownership, permits, registrations, taxes, encumbrances, and contractual agreements. You will then receive a clear legal assessment outlining the key risks, points to consider, and recommended next steps.

Lead Time

The turnaround time depends on the availability and completeness of the documents. In many cases, an initial legal review can begin quickly once the relevant documents have been submitted. For more complex cases or unclear documentation, additional research may be necessary.

Cost Estimate or Pricing Model

The costs depend on the type of property, the availability of documents, and the complexity of the case. In practice, we may work with a fixed-price agreement or a rate based on the work required. For investigations or due diligence processes, we generally require an advance payment of €1,500. Please contact us for a customized estimate.

FAQ

Should I have due diligence performed before I pay or sign?
Yes. Legal due diligence is particularly important right before payment or signing. At that point, risks related to ownership, permits, encumbrances, registrations, and contractual agreements can still be assessed in time.

What risks does Govinda Law Firm assess during due diligence?
Among other things, we assess risks related to ownership, permits, registrations, taxes, existing encumbrances, and contractual agreements. The specific issues that are relevant depend on the property and the available documents.

What documents are needed for an initial assessment?
For an initial assessment, it is always helpful to have any available title documents, draft agreements, permits, registrations, and other relevant documents pertaining to the property. The more complete the documentation, the better the legal risks can be assessed.

How long does a due diligence review typically take?
The turnaround time depends on the availability and completeness of the documents and on the complexity of the case. Once the relevant documents have been provided, an initial legal review can usually begin promptly.

Can due diligence also be performed on leasehold properties in Bali?
Yes. Legal due diligence is particularly important for leasehold properties. This involves carefully reviewing the lease terms, the lease term, renewal agreements, the landlord’s position, permits, and other legal risks that could affect your use of the property and your investment.

Can Govinda Law Firm also assist with real estate matters in Lombok?
That depends on the type of case, the location, and the legal context, but in principle, we can also assist clients in Lombok. Please contact Govinda Law Firm to discuss whether legal due diligence or guidance is appropriate for your specific real estate project in Lombok.

What happens after the initial legal review?
After the initial review, you’ll gain insight into the key legal risks, points to consider, and possible next steps. Based on this information, you’ll be better able to decide whether to proceed with the transaction, have additional documents reviewed, or seek further assurance first.

Anyone looking to buy or lease real estate in Bali should not only review the purchase or lease agreement but also consider the underlying property rights, permits, and investment structure. Be sure to read more about buying or leasing a home in Bali, types of property ownership in Bali, and legal guidance for investing in Bali.